Uhuru Orders Reduction of Tax Burden

  • President Uhuru Kenyatta delivers his speech during Jamhuri Day celebrations at Nyayo Stadium on December 12, 2019. PSCU
  • President Uhuru Kenyatta on December 12, gave orders to the National Treasury and Kenya Revenue Authority to embark on the process of reducing the tax burden for small scale businesses.

    In a statement sent by the Presidential Strategic Communications Unit, in line with the president’s speech during Jamhuri Day celebrations at Nyayo Stadium, Kenyatta called for an overhaul of Kenya’s tax system with a view of reducing the burden on Micro, Small and Medium Enterprises (MSME's).

    The president further indicated that Kenya’s economic growth trend had been impressive, but the tax burden on MSMEs ought to be reduced so that a bigger margin of Kenyans can reap the benefits.

    President Uhuru Kenyatta during the Jamhuri Day celebrations at Nyayo Stadium on December 12, 2019.
    President Uhuru Kenyatta during the Jamhuri Day celebrations at Nyayo Stadium on December 12, 2019.

    Further, Kenyatta mentioned that the government was focusing on unlocking bottlenecks that hold back the power of Kenyan enterprises.

    “My administration is focused on other salient factors that are holding back the potential of our enterprises; particularly with regard to taxes and tax administration, reduction or where possible elimination of fees or charges levied by government agencies as well as the private sector,” remarked President Kenyatta.

    The head of state also indicated that the government, through relevant bodies, stood determined to ensure the elimination of bureaucracy and simplification of processes in trade, access to credit as well as streamline consumer protection.

    “In order to address some of these challenges, I order and direct that the National Treasury and Kenya Revenue Authority review our tax structures, especially in relation to small businesses, so as to reduce the tax burden while fostering tax-compliance,” the president spoke.

    In a period when many MSMEs are affected by litigation processes initiated between traders, Kenyatta directed that the National Treasury and the Judiciary come up with mechanisms to ensure that commercial disputes below the value of Ksh1 million are exempted from court fees.

    The head of state further mentioned that the government would continue making Kenya more attractive for increased direct investments by foreigners and sustain the regulatory reforms that have seen the country rise 80 positions in the World Bank survey on ease of doing business since 2013.

    Efforts to cement Nairobi’s place as a diplomatic hub and Kenya’s position as an economic powerhouse in the region also featured in the speech, with Kenyatta assuring to better the city and make it more attractive globally.

    Morris Ochieng puts final touches to a stove at his business at the Jua Kali sheds in Eldoret
    Morris Ochieng puts final touches to a stove at his business premises at the jua kali sheds in Eldoret